There is a huge recent surge in the popularity of cryptocurrency. More and more individuals are seeking opportunities for investing in them. But just what are cryptocurrencies? Cryptocurrency is only an electronic digital currency that uses cryptography for its security. This makes it extremely tough to counterfeit. Also, it is not issued by any central authority making it safe from government rules and manipulations. In essence, cryptocurrencies are limited entries in the database that there is no-one to change unless they fulfil specific conditions. As of may 2018, over 1800 cryptocurrencies exist. Some of many advantages of cryptocurrencies as explored in this article.
Secure against fraud:
As mentioned above individual cryptocurrencies can’t be counterfeit hence making them 100% safe and secure. Also, they cannot be reversed arbitrarily by the sender as may be the case with bank card charge-backs.
There is no third party involved in the purchase of cryptocurrency. This implies most of the third party approvals and involvement coinmarketcap is totally eliminated. Usually, a purchase of a house involves third parties like notary, lawyers and fee payments. Cryptocurrency contracts can be specifically made to eliminate third party involvement and asset transfer can be completed at about a fraction of the time required in traditional asset transfers. This helps in saving long and efforts.
Since miners are involved, there is no transactions fee for cryptocurrency exchanges. However, many users usually engage a third party inside their transactions, for e.g. Coinbase for helping them in maintaining their bitcoin wallets. These third parties usually charge a nominal fee due to their services and act like Paypal does for money or bank card users. Some other cryptocurrency exchanges include BTCORA, Coinmama, Bitpanda and Kraken.
Identification of theft:
Earlier it seemed like bitcoin can be bought and sold by anyone anonymously. These anonymity factors cause it being converted to something for financing crime. However, this is no longer the case. If you use a credit card, you give full use of your finances to the merchant even when the transactions are of a very small amount. Credit cards are operated on’pull’basis where the designated amount is pulled by the store or merchant initiating the payment. Whereas cryptocurrencies operate on’push’basis that permits the cryptocurrency owner to control the total amount being sent without further information. Hence cryptocurrencies can be termed much safer than credit cards
Among the cardinal advantages of cryptocurrencies is that they’re highly decentralized since they work with a global network of computers called the blockchain to handle the database that records transactions. Hence cryptocurrencies aren’t managed by any central authorities but by a network. This network operates on a peer-to-peer basis. Since a network of anonymous and widely distributed miners are in control of the transactions problems like fraud, censorship and others are eliminated. Centralized exchanges are user friendly and access however they’re highly vunerable to fraud. Decentralized exchanges are guarded better and provide more security. In addition they provide better privacy and are’trust-less’in nature.
Recognition at universal level:
Cryptocurrency operates at the universal level. They’re not bound by any exchange rates, interest rates or charges of any country. Hence they can be easily used internationally without experiencing any issues. This helps in saving a lot of time and money which may otherwise be needed for transferring money from one country to another country. They offer you ultimate control over your own money. They help in fast global transactions and minimal transfer fees. If properly used and understood cryptocurrency might change the face area of our global economic system entirely.